Private equity firm pledges £150m worth of investment for 2019
Private equity firm LDC said it is committed to investing £150m in business across the Midlands over the next 12 months.
The firm invested £437m of equity last year in 23 new deals, a record total for the business, driven by continuing demand for private equity from the UK’s medium-sized businesses.
In an annual summary of its performance, LDC – which typically invests between £5m and £100m in a single transaction – said every one of its seven UK regional teams invested last year and that it is committed to investing £1.2bbn in ambitious high-growth firms over the next three years.
Key deals by the Midlands team during 2018 included backing the £22.5m management buyout of Precision Micro, Europe’s leading photo-chemical etching company, and a multi-million-pound investment in Neilson, the UK’s multi-award winning provider of overseas active holidays.
In addition, the team backed the management buyout of OCS Asset Solutions with a £13m investment to support its expansion, and completed a minority investment in SMH Fleet Solutions to support a buy and build strategy.
LDC also realised its investment in Birmingham’s iconic NEC Group in a sale to Blackstone.
This followed a four-year transformation programme to enhance sites, facilities and customer experience and broaden the range of events across the group’s portfolio, supported by significant capital investment.
In July, the Midlands team exited its partnership with pallet distribution services provider The Pallet Network in a £52.8m trade sale to leading UK supply chain, transport and logistics group Eddie Stobart Logistics plc. This followed a 10-year partnership, during which it trebled its revenues and acquired courier service Ezehaul.
On LDC’s exits across the UK, the firm said it had worked closely with management teams throughout 2018 to take advantage of favourable selling conditions with 26 divestments. Total proceeds generated reached £1bn with an average money multiple of 2.7 times.
Looking ahead, LDC said it expects a challenging period across the market as uncertainty continues, but confirmed its appetite to invest remained “as strong as ever”.
Richard Whitwell, head of LDC in the Midlands, said: “The Midlands is one of the UK’s biggest economic hubs and is renowned for being home to some of the country’s strongest, most resilient businesses. The region therefore continues to be a key focus for LDC and we’re ready to support local management teams with funding and expertise to help build long-lasting value.
“LDC is committed to backing business ambition and over the next three years, we’ll be investing £1.2billion in ambitious firms across the UK to ensure that they have the support and investment they need to achieve their growth plans.”
